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Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments |
3. | Derivative Financial Instruments
Commodity Derivatives As of December 31, 2021, Devon had the following open oil derivative positions. The first table presents Devon’s oil derivatives that settle against the average of the prompt month NYMEX WTI futures price. The second table presents Devon’s oil derivatives that settle against the respective indices noted within the table.
|  | Price Swaps |  |  | Price Swaptions |  |  | Price Collars |  |
Period |  | Volume (Bbls/d) |  |  | Weighted Average Price ($/Bbl) |  |  | Volume (Bbls/d) |  |  | Weighted Average Price ($/Bbl) |  |  | Volume (Bbls/d) |  |  | Weighted Average Floor Price ($/Bbl) |  |  | Weighted Average Ceiling Price ($/Bbl) |  |
Q1-Q4 2022 |  |  | 26,112 |  |  | $ | 43.75 |  |  |  | 10,000 |  |  | $ | 46.67 |  |  |  | 28,160 |  |  | $ | 51.44 |  |  | $ | 61.78 |  |
Q1-Q4 2023 |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |  |  |  | 1,110 |  |  | $ | 60.58 |  |  | $ | 70.58 |  |
|  | Oil Basis Swaps |
Period |  | Index |  | Volume (Bbls/d) |  |  | Weighted Average Differential to WTI ($/Bbl) |
Q1-Q4 2022 |  | BRENT |  |  | 1,000 |  |  | $ | (7.75 | )
Q1-Q4 2022 |  | NYMEX Roll |  |  | 29,000 |  |  | $ | 0.45 |
As of December 31, 2021, Devon had the following open natural gas derivative positions. The first table presents Devon’s natural gas derivatives that settle against the Inside FERC first of the month Henry Hub index and the end of month NYMEX index. The second table presents Devon’s natural gas derivatives that settle against the respective indices noted within the table.
|  | Price Swaps (1) |  |  | Price Collars (2) |
Period |  | Volume (MMBtu/d) |  |  | Weighted Average Price ($/MMBtu) |  |  | Volume (MMBtu/d) |  |  | Weighted Average Floor Price ($/MMBtu) |  |  | Weighted Average Ceiling Price ($/MMBtu) |
Q1-Q4 2022 |  |  | 110,986 |  |  | $ | 2.77 |  |  |  | 164,342 |  |  | $ | 2.78 |  |  | $ | 3.55 |
Q1-Q4 2023 |  |  | 4,959 |  |  | $ | 3.65 |  |  |  | 23,000 |  |  | $ | 3.32 |  |  | $ | 4.63 |
| (1) | Related to the 2022 open positions, 10,986 MMBtu/d settle against the Inside FERC first of month Henry Hub index at an average price of $3.40 and 100,000 MMBtu/d settle against the end of month NYMEX index at an average price of $2.70. All 2023 open positions settle against the Inside FERC first of month Henry Hub index.
| (2) | Price Collars settle against the Inside FERC first of month Henry Hub.
|  | Natural Gas Basis Swaps |
Period |  | Index |  | Volume (MMBtu/d) |  |  | Weighted Average Differential to Henry Hub ($/MMBtu) |
Q1-Q4 2022 |  | WAHA |  |  | 70,000 |  |  | $ | (0.57 | )
Q1-Q4 2023 |  | WAHA |  |  | 70,000 |  |  | $ | (0.51 | )
Q1-Q4 2024 |  | WAHA |  |  | 40,000 |  |  | $ | (0.51 | )
As of December 31, 2021, Devon did not have any open NGL derivative positions. Financial Statement Presentation All derivative financial instruments are recognized at their current fair value as either assets or liabilities in the consolidated balance sheets. Amounts related to contracts allowed to be netted upon payment subject to a master netting arrangement with the same counterparty are reported on a net basis in the consolidated balance sheets. The table below presents a summary of these positions as of December 31, 2021 and 2020.
| December 31, 2021 |  |  | December 31, 2020 |  |  |
| Gross Fair Value |  |  | Amounts Netted |  |  | Net Fair Value |  |  | Gross Fair Value |  |  | Amounts Netted |  |  | Net Fair Value |  |  | Balance Sheet Classification
Commodity derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term derivative asset | $ | 6 |  |  | $ | (4 | ) |  | $ | 2 |  |  | $ | 23 |  |  | $ | (18 | ) |  | $ | 5 |  |  | Other current assets
Long-term derivative asset |  | 6 |  |  |  | — |  |  |  | 6 |  |  |  | 1 |  |  |  | — |  |  |  | 1 |  |  | Other long-term assets
Short-term derivative liability |  | (579 | ) |  |  | 4 |  |  |  | (575 | ) |  |  | (161 | ) |  |  | 18 |  |  |  | (143 | ) |  | Other current liabilities
Long-term derivative liability |  | (2 | ) |  |  | — |  |  |  | (2 | ) |  |  | (5 | ) |  |  | — |  |  |  | (5 | ) |  | Other long-term liabilities
Total derivative liability | $ | (569 | ) |  | $ | — |  |  | $ | (569 | ) |  | $ | (142 | ) |  | $ | — |  |  | $ | (142 | ) |  |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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